FATF exit to address liquidity crunch, business leaders say

ISLAMABAD: The removal of Pakistan from the grey list of the Financial Action Task Force (FATF) will boost the economy by attracting foreign direct investment as well as address the liquidity issues faced by Islamabad, said the business community on Sunday.

As it hailed the decision of the terror financing watchdog, business leaders said the FATF exit will restore the confidence of international financial institutions and improve the credit ratings of Pakistan, putting it on the path of sustainable growth.

Federation of Pakistan Chamber of Commerce and Industry President Irfan Iqbal Shaikh hoped that the removal will address the liquidity issues as releases from the multilateral financial institutions and other donor agencies would enhance following this decision.

Islamabad Chamber of Commerce and Industry President Ahsan Zafar said that the removal from the grey list would boost the confidence of international creditors and donor agencies, including the International Monetary Fund (IMF), Asian Development Bank (ADB), and the World Bank. He said that the decision would also help in promoting a soft image of the country.

He claimed Pakistan suffered financial losses to the tune of $40 billion during the last three years after it was put on the grey list and added that the removal would attract more export orders from abroad which would help bridge the trade deficit.

“Besides, it will also help reduce the rupee-dollar parity as well as ease negotiations with IMF and other multilateral donors and creditors,” he added.

Pakistan Hi-Tech Hybrid Seed Association (PHHSA) Chairman Shahzad Ali Malik said economic activities would accelerate and the confidence of investors across the globe will be restored as a result of exiting the grey list.

Earlier this week, the global money laundering and terrorism financing watchdog removed Pakistan from a list of countries under “increased monitoring” after a lot of work by Pakistani authorities.